Robert Vrij, Openwave's executive VP of worldwide field operations, appointed president and CEO following resignation of David Peterschmidt

March 26, 2007

3 Min Read

REDWOOD CITY, Calif. -- Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, today announced that Robert Vrij, Executive Vice President of Worldwide Field Operations, has been appointed President and Chief Executive Officer, effective immediately. His appointment follows the resignation of David Peterschmidt, who previously served as President and Chief Executive Officer. Mr. Peterschmidt will continue to serve on Openwave's Board of Directors.

Mr. Vrij has served as Openwave's Executive Vice President of Worldwide Field Operations since January 2007. Mr. Vrij was formerly President and Chief Executive Officer of Lucent's Europe, Middle East, and Africa operation, where he managed approximately $2 billion in revenue and oversaw an organization of 1,000 employees.

"Under Robert's leadership, Openwave will continue its product transition to an end-to-end solutions provider and will continue to support the Company's global customer base with the delivery of new, next generation solutions," said Bernard Puckett, chairman of Openwave's Board of Directors. "We want to thank Dave for his hard work and dedication since he joined the Company in November 2004 and we look forward to his continued contributions to the Board."

Exploration of Strategic Alternatives

The Company also announced that it has retained Merrill Lynch & Co. as its financial advisor to explore a range of strategic alternatives and options to enhance shareholder value, including a possible sale of the company. Openwave's Board of Directors has formed a Strategic Alternatives Committee of the Board, composed of David Peterschmidt as committee chair, along with Masood Jabbar and Jerry Held, both of whom are independent members of the Board of Directors, to assist the full Board in overseeing the process.

"Openwave's Board of Directors is committed to taking all appropriate and necessary action to enhance value for all stockholders," said Mr. Puckett. "As the Board reviews the range of alternatives available, we remain committed to ensuring the long-term growth and viability of Openwave's products and solutions, continuing to support our longstanding customer base with world class service, and acting in the best interests of our stockholders, customers and employees."

The Company noted that there can be no assurance that the exploration of strategic alternatives will result in any certain course of action. The Company does not intend to disclose developments with respect to the exploration of strategic alternatives unless and until the Board of Directors has approved a course of action. Skadden, Arps, Slate, Meagher & Flom LLP is serving as Openwave's legal advisor.

Updated Third Quarter Financial Outlook

As stated previously, Openwave is currently undergoing a product transition. Accordingly, due to the inherent uncertainty in predicting the Company's future financial performance, Openwave is withdrawing its prior financial outlook for its third and fourth fiscal quarters ending on March 31, 2007 and June 30, 2007 respectively. The company anticipates revenue for the fiscal third quarter ended March 31, 2007, to be approximately $65 million to $70 million. The Company also expects that accounts receivable collections for the quarter ended March 31, 2007 will exceed $100 million which will result in a meaningful reduction in accounts receivable and days sales outstanding as of March 31, 2007. These financial results are preliminary and subject to change.

Stock Repurchase Update

The Company also announced that Merrill Lynch has delivered a total of four million shares to the Company under its stock repurchase agreement as of March 2, 2007, and the Company has retired such shares. Under the stock repurchase agreement, Openwave made an upfront payment of $100 million to Merrill Lynch on January 31, 2007. Merrill Lynch will purchase shares in the open market and deliver shares periodically to Openwave, with the final delivery during Openwave's fourth fiscal quarter of 2007. The total number of shares to be delivered will be equal to the $100 million payment divided by a discounted average price. The Company plans to retire the shares as installments are received.

Openwave Systems Inc. (Nasdaq: OPWV)

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